Insight

Scottish subsidies are the roots of the future

08.8.25

Image of Murthly Estate – Scotland 67

A new generation of agricultural subsidies is forming against a backdrop of climate targets looming, biodiversity loss accelerating, and young people unsure whether farming offers a truly viable future.

The way we support farming through subsidies is changing, and while the rhetoric is strong on sustainability, resilience, and future proofing, we need to be wary about who these subsidies really serve, and what kind of agriculture is being funded.

June’s updates from the Scottish Government seemed promising, laying out practical steps for land managers to improve soil health, biodiversity, and carbon management. On the surface, it appears to be a solid framework and something farmers can actually work with. But frameworks alone don't pay bills. The question is how well this will be woven into the Basic Payment Scheme and AECS, where real financial support lives. Let’s lay it all out:

The grass must get greener

The Future Farming Investment Scheme is £14 million in funding for green capital projects, with a cap of £20,000 per business. This targeted investment for climate action, environmental protection, and efficiency is an opportunity for farm businesses to invest in the future. It’s not a silver bullet, but it is a strong start, encouraging practical changes that make farms more efficient, more climate-resilient, and more environmentally responsible.

Crucially, the FFIS rewards farms that are forward-looking, those that are continuously investing in low-emission equipment, soil improvement, and better land management, showing that they are prioritising the future of farming, rather than just floating for now.

Beef Support Scheme

In a welcome move, the Scottish Suckler Beef Support Scheme will drop the 410-day calving interval requirement for small herds starting in 2026. This positive recognition shows that small-scale farms and crofts operate on different rhythms and should not be penalised by one-size-fits-all rules.

The next generation

A growing focus on the next generation of workers offers hope that a shift to long-term thinking is underway. The creation of a £140,000 Small Producer Training Fund, combined with tailored loans and public land access initiatives, signals an understanding that the next generation is key to the future of the sector. However, we await any detail on how this fund might actually be operated.

Training and opportunity are just as important as financial support. If we want vibrant rural communities 20 years from now, we must invest in the people who will live and work there, not just the land they’ll inherit.

Biosecurity risks

Although new support schemes and the farming community offer genuine reasons for optimism in Scotland’s rural sector, biosecurity remains a persistent and growing threat. From the recent outbreak of Bovine Tuberculosis at Jeremy Clarkson’s Diddly Squat Farm to warnings about Bluetongue, Foot-and-Mouth and Avian Flu, it’s clear how vulnerable our food system remains to disease. These aren’t isolated incidents; they are signals of systemic risk, and they serve as a stark reminder that resilience in farming must include stronger, smarter biosecurity measures.

Optimism for the sector

Beyond the immediate challenges, there’s an opportunity to reshape what rural support actually delivers. Farmers, crofters, and policymakers are increasingly aligned in the view that subsidies shouldn’t just preserve the status quo; they should enable progress. Designed well, they can incentivise sustainable land use, reward environmental outcomes, and safeguard future generations’ ability to live and work the land.

Public money is moving toward public value: richer soils, restored ecosystems, thriving communities, and fairer access to land. That’s not a threat to farming, but a chance to prove that good farming delivers for everyone. If Scotland gets this right, subsidies won’t just support survival within the sector, they’ll power a resilient, forward-looking rural future.

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Rosanna MacKessack-Leitch

Associate, Rural Estates Management & Professional

Rosanna believes that building a trusted working partnership with clients is vital for success.

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Image of Ralph Peters

Ralph Peters

Head of Rural, Scotland

A firm but fair approach has earned Ralph the enviable reputation as the ‘go to’ expert on rural property issues.

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